American Eagle posts bigger-than-expected loss on virus-led store closuresAmerican Eagle Outfitters Inc posted a steeper-than-envisioned loss on Wednesday, as sales and store traffic plummeted following coronavirus-led store closures, sending shares down as much as ten.5%.

The retailer, which withdrew its annual forecast in April, has expert a fall in need for its jeans and popular Aerie brand name apparel, which include intimates and athleisure.

The Aerie brand name recorded a revenue drop of 2%, compared with a 28% rise a year ago. Earnings at the American Eagle label fell forty five% all through the quarter.

The company also suspended its 2nd-quarter dividend and does not anticipate declaring a dividend for the relaxation of this year to protect liquidity.

American Eagle also claimed its web loss stood at $257.2 million, or $1.fifty four for every share, compared with a earnings of $40.eight million, or 23 cents for every share, a year previously, largely because of to an impairment demand of about $156 million relevant to COVID-19-induced closures of 272 merchants.

Excluding 1-time goods, the company documented a loss of 84 cents for every share in the very first quarter, larger than analysts’ common estimate of a loss of 30 cents for every share, in accordance to IBES info from Refinitiv.

Total revenue fell nearly 38% to $551.7 million all through the quarter ended May well 2, also missing marketplace expectations of a revenue of $634.three million.